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Knowledge Centre > Articles > Will Solar Panels Improve Your Home Value?

Will Solar Panels Improve Your Home Value?

knowledge

25 May 2020

Solar technology has greatly increased since the old, heavy panels of the early days. In addition, the framing used to support solar panels is more lightweight and longer-lasting. Finally, tax breaks and other incentives make adding solar to your home less expensive, thus increasing your return on investment.

For Your Benefit

If you install the standard or average solar power system to your home, you'll have panels that will generate 5,000 watts of power. If you're a resident of California, you can expect that your solar panel installation will add $4.00 per kilowatt hour of value to your home, or $20,000. Other states are currently trending at $3.00 per kilowatt hour, or $15,000. Depending on your location, your solar power system will not only add value to your home for future sale, but you can enjoy both state and federal tax breaks. In addition, your utility bills will go down and stay down once the system is installed. You may even be able to sell power back to the grid and turn a profit on your solar installation.

Improved Technology and Installation Structure

Early solar panels were mounted on glass and could be extremely heavy. The installation process was cumbersome and because all of the installation hardware was exposed to the elements, there was a constant risk of corrosion and a need for repair in the future.

Luckily, technological advances in panel structure and mounting hardware creation has greatly reduced both of those risks. Modern solar panels are very lightweight. New mounting hardware is forged with a protective coating that effectively inhibits the spread of corrosion. Not only will your solar installation be effective in reducing your bills and giving you a tax break, but modern kits mean that your solar panel installation in San Jose or your particular locale can be done in a day.

At Time of Sale

It's important to note that today's homebuyers are shying away from extremely large homes. As minimalism expands as a lifestyle and tiny homes become more accepted, there are many who simply want a small, simple home. Investments to your current home that will pay off later are becoming harder to find. Your solar power installation offers a decent rate of return later and utility savings now. When you're ready to sell, consider putting your home on the market in the spring. Make sure your visitors during the open house can step outside and watch that power meter spin backward. Demonstrate what a great deal potential buyers can enjoy thanks to your investment in solar power.

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Warranties

You will likely have the option to buy or lease your solar setup. You can also either finance the system through the installation company or via equity financing from your home. No matter how you pay for your solar power system, you'll likely have a warranty.

If you plan to sell your home in the near future, consider purchasing a warranty with the longest term possible. You can include this warranty in the sale package of your home. Not only will this be a positive selling point for the new buyer, but you may be able to add the cost of the extended warranty to the sale price of the house.

Work With An Established Company

Carefully review the business background of your solar installation company. If you have a warranty, make sure the manufacturer of the solar panels also has a strong history of good quality. Not only will this give you peace of mind for your term in the house, but the warranty you pass on to the new owners will be backed by businesses with a strong quality history.

While you're gathering quotes, make sure to ask for references and make calls to happy customers. Drive around and look at other solar installations to make sure you are happy with the look of the panels on the house. Finally, study diagrams and schematics to make sure that you understand how the power will come into your house and where those connectors are. If you can explain how the system feeds into the house, you can help potential buyers get over any reticence.

Conclusion

Solar technology continues to grow. By making this investment, you can increase your home's value, gain dollars back in the sale and save money right now. A solar power installation is a great investment.